Question: Question 8 (20 points) Tu-Tu Corp issues a 5-year, $100,000 bond with a stated interest rate of 8.00%. The market rate is 12.00%. Interest is
Question 8 (20 points) Tu-Tu Corp issues a 5-year, $100,000 bond with a stated interest rate of 8.00%. The market rate is 12.00%. Interest is paid semi-annually. Using the Effective interest Rate method of amortization, how much is the discount amortized at the end of year 3? a) $1,116.76 b) $1,183.77 Oc) $1,330.08 Od) $1,254.79 Question 9 (20 points) Tu-Tu Corp issues a 6-year. $100,000 bond with a stated interest rate of 10.00% The market rate is 8.00%. Interest is paid semi-annually. What is the amortized premium amount at the end of year 3? (The effective interest rate method of amortization is used.) a) $624.59 b) $675,55 c) $649.57 d) None of these is the correct
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